Greece scrutinizes property deals: ENFIA under special review

Photo: Ekathimerini

The Independent Authority for Public Revenue (AADE) has launched a large-scale audit of real estate transactions across Greece. The review, which affects thousands of property owners, is being conducted remotely. Using an automated risk-analysis system, inspectors identify transfers completed without payment of the mandatory ENFIA property tax, reports Ekathimerini.

Scale of the campaign

The inspection covers transactions completed in 2024, including residential, commercial, and land properties. The AADE cross-checks ownership transfer data with information from internal and external sources through a risk-analysis system. This approach helps detect transactions lacking the required ENFIA certificate or containing errors in documentation. According to the authority, more than 211,000 property transfer declarations and around 111,000 inheritance filings were submitted via the myPROPERTY platform in 2024, reflecting the massive scope of the audit.

What is ENFIA

Every property transaction in Greece — whether a sale, donation, or inheritance — must be accompanied by an ENFIA certificate (Uniform Real Estate Property Tax). This document confirms that the tax has been paid or lawfully waived for the past five years. Without it, notaries cannot finalize ownership transfers, and tax authorities have the right to suspend transactions until the issue is resolved. If the certificate is issued after the current year’s ENFIA assessment, its validity is extended to six years. The same rule applies to inheritances: a deed of acceptance cannot be executed without proof of payment or exemption.

How ENFIA is calculated

The tax is determined by the property’s location, size, age, and type (residential or commercial). The main rate ranges from about €2 to €16 per sq.m., with an additional “supplementary tax” applied when total property value exceeds roughly €250,000. ENFIA is billed annually and can be paid either in full or in installments from September to June. Payments are made online via the tax platform.

Other property-related taxes

In addition to ENFIA, property owners in Greece pay several other taxes associated with purchasing, owning, and renting real estate:

• Property Transfer Tax – about 3.09% of the officially assessed value for existing properties, paid by the buyer.
• Municipal levies – local taxes set by municipalities, averaging 0.025–0.035% of the assessed value.
• Value Added Tax (VAT) – 24% for new properties with building permits issued after January 2006. A temporary exemption until the end of 2025 allows some buyers to pay the 3.09% transfer tax instead.
• Rental income tax – progressive: 15% on income up to €12,000, 35% on €12,001–35,000, and 45% above €35,000. From January 1, 2026, a 25% rate will apply to the €12,001–24,000 bracket to smooth out taxation levels.

Investor considerations

Investors should note that Greece’s property tax burden remains substantial, especially amid rising housing prices and maintenance costs. Rental yields are modest: according to Global Property Guide, the average gross return fell from 4.60% in Q2 2025 to 4.39% in Q4. Net yields are 2–3 pp lower due to maintenance costs, tenant turnover, and rental income taxation.

Analysts at International Investment note that combined tax obligations, moderate rental rates, and tighter rental regulations — including stricter rules for short-term leases and reporting — are increasing expenses and further reducing net profitability, which now averages around 3% per year.